South Sudan is set to resume crude oil production, aiming to revive its economy after exports were disrupted earlier this year due to pipeline damage caused by conflict in neighboring Sudan. The landlocked country relies heavily on its oil, which is transported via Sudan to international markets.
The Ministry of Petroleum has announced December 30, 2024, as the target date to restart operations in blocks three and seven, following repairs to the damaged pipeline. In a letter dated December 19, the director general of the Petroleum Authority requested Dar Petroleum Operating Company (DPOC) to submit its production resumption plans promptly.
However, correspondence within the DPOC consortium, dated December 23, highlighted unresolved issues that need to be addressed before confirming the restart date. These discussions are ongoing to ensure all requirements are met for smooth operations.
South Sudan, which gained independence in 2011, inherited a significant portion of Sudan’s oil reserves, producing over 150,000 barrels daily before the pipeline rupture. Despite its oil wealth, the country faces immense challenges, including ethnic conflicts, economic instability, and natural disasters.
Adding to its struggles, South Sudan is currently battling a cholera outbreak in the north, exacerbated by the influx of people fleeing violence in Sudan. The resumption of oil production is seen as a crucial step toward economic recovery amid these ongoing challenges.